Connect with us

Investing

Global equity funds post outflows on virus worries – Lipper

Global equity funds post outflows on virus worries - Lipper 9

(Reuters) – Global equity funds recorded net outflows for the first time in six weeks in the week to July 21 as concerns over a resurgence of coronavirus cases worldwide prompted investors to move towards safer assets.

According to Refinitiv Lipper data, global equity funds saw net outflows of $5.9 billion in the week, led by a $10.4 billion outflow from U.S. equity funds. Asian and European equity funds, however, saw net inflows of $2.8 billion and $0.6 billion respectively.

Global equity funds post outflows on virus worries - Lipper 10

OCBC analysts said in a note that a resurgence of COVID-19 cases caused by the Delta variant of the coronavirus had likely soured market sentiment, along with renewed lockdown measures.

“The softer risk sentiment likely caused investors to pivot away from equities to the less volatile bond market,” they said.

Among equity sector funds, cyclical sectors such as financials and industrials witnessed net outflows worth $2.6 billion and $1.4 billion respectively. Tech sector funds drew a net inflow of $2.3 billion, the biggest in more than four months.

Investors seeking lower-risk piled $3.8 billion into government bond funds, the most since the week ended February 3.

Riskier high-yield bond funds, however, faced outflows worth $2 billion.

Global equity funds post outflows on virus worries - Lipper 11

Global money market funds recorded a net inflow of $5.5 billion in the week, after facing a combined outflow of $148.5 billion in the previous five weeks.

Among commodity funds, energy sector funds saw marginal inflows, in contrast to precious metal funds.

An analysis of 23,669 emerging market funds showed bond funds received a net $954 million, and equity funds $318 million.

Global equity funds post outflows on virus worries - Lipper 12

Global equity funds post outflows on virus worries - Lipper 13

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kirsten Donovan)

Editorial & Advertiser disclosure
Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.
Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Recommended

Newsletters with Secrets & Analysis. Subscribe Now